Aid promise may defuse Iran nuclear dispute

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Iran would back off threats to restart nuclear processing if
Britain, France and Germany promised to give it a comprehensive aid
proposal before August, Iranian negotiators have indicated.

Wednesday's agreement, which is tentative until Tehran accepts
it, averts an immediate showdown with Western powers.

Consequently, the World Trade Organisation yesterday [Thursday]
agreed to start accession negotiations with Iran after the United
States dropped a long-standing veto.

Mohammad Reza Alborzi, Iran's ambassador to the United Nations
in Geneva, was immediately invited into the closed-door meeting of
WTO's General Council.

Iran applied to join the WTO in September 1996.

After Wednesday's meeting Britain's Foreign Minister, Jack
Straw, said: "Europe recognises Iran's right under the nuclear
non-proliferation treaty without discrimination and Iran reaffirmed
its commitment to not seek nuclear weapons."

Signatory countries to the treaty, including Iran, can pursue
nuclear technology for peaceful purposes. The chief Iranian
negotiator, Hassan Rowhani, said: "Proposals were made by both
sides … We believe that following what was discussed today we
can reach a final objective in a short time."

In Washington, a State Department official said the session's
outcome was positive. "What they've agreed is exactly what we've
been talking about."

Before the meeting the Iranians had threatened to restart
nuclear processing. The European nations' response was that if Iran
did that they would ask the International Atomic Energy Agency's
board of governors to refer Iran to the UN Security Council for
punitive action. Iran has consistently sought to avoid a
confrontation before the council.

Talks between the Iranians and the three EU countries began in
November when the Europeans agreed to give Iran economic,
political, security and technological aid, including a free trade
pact, in exchange for Iran sticking with a moratorium that began in
November on its nuclear program. The agreement at Wednesday's
meeting would delay the Europeans' formal offer until after Iran's
elections in three weeks. If Tehran approves the deal the country's
freeze on nuclear activities would be extended.

In addition to Mr Straw, the other Europeans at the meeting were
France's Foreign Minister, Michel Barnier, Germany's Foreign
Minister, Joschka Fischer, and the European Union's Foreign
Minister, Javier Solana. After the meeting, they seemed serious but
relieved. "We have our different positions," Mr Fischer said.

"It's not easy to bridge the gap, but as long as we have all
these commitments, that is important."

An Iranian diplomat said there were rough moments for those on
both sides. "We agreed that this meeting should not involve mutual
threats, and I didn't hear any threats from either side."